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Four tips on managing growth effectively in your business

Business growth is important - it's a valuable yardstick that indicates that your business is meeting the needs of people who are rewarding you with their patronage. Business growth can take the form of expansion in your current market, setting up shop in new markets, or cross-selling/up-selling your customers with new products and services. Interestingly, business growth also has its attendant pressures such as the need to find expansion capital and manage increased staffing requirements.
Many business owners are well equipped to manage the financing and human resource requirements of growth. However, growth when not properly managed could become an Achilles heel for the business. This piece provides insight on some overlooked areas that could pose problems down the line for a growing business.

Four tips on managing growth effectively in your business

1. Manage your inventory

If you are into a retail business, a business that produce tangible goods, or any business that deal with physical stock, managing your inventory and supply chain will be one of the biggest issues you'll face as your business grows. It's in your best interest to create time to proactively check up your inventory to be sure that your stock will be enough for growth patterns. You should also pay attention to the size of your stockroom – you don't want to order larger supplies only to find out that the storeroom is too small to contain the materials. More so, a bigger storeroom and larger stock of inventory might mean that you'll need to review the insurance coverage on your stock/storeroom/warehouse.

2. Manage your supply chain backup suppliers

Growth in your business should ideally lead to growth for your suppliers –in most cases; your suppliers won't necessarily grow with your business. If your major supplier disappoints you – maybe they can't deliver your order in needed quantities or in good time – the delay could cause massive disruptions to your operations and send out a message that you are not quite ready for the big league. You can reduce the odds of disappointment along your supply chain by having contingent or redundant suppliers. If you don't have any special deals or agreements with your suppliers, you may want to find bigger suppliers as your business grows.

3. Manage your insurance plans to reflect your growth

As your business grows, you'll make some vertical and horizontal additions to your operations – additions that may not be in your original insurance policy. You'll need to review your insurance coverage in order to be sure about what it covers and what it doesn’t cover. You may also want to review the deal you have with your current insurance provider and read the reviews of other insurers to see if you can get a better deal. Many business owners tend to buy a Business Owners Policy (BOP), you should ensure that whatever policy you purchase provides coverage on your property, lost profits, and business interruptions.

4. Manage new and temporary workers with proper training

You'll most likely increase your workforce as your business grows – you may start with some temporary workers and then get additional permanent workers down the road. You need to create an effective process for training and managing new workers. You'll need to think about payroll expenses, providing operational guidance, and managing the other responsibilities of an employer to employees. You also need to invest in making sure that you make smart and educated hiring decisions with pre-employment screening checks where necessary. More importantly, you should make sure that your employees are suited for their roles instead of hiring anybody that comes your way because you are short of staff.

20 Jul 2017 16:44